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Also UK VAT. Companies only need to register for VAT when they turn over more than £85,000 in a year. This adds a great deal of extra complexity for running t
by rwmj 3y ago
Also UK VAT. Companies only need to register for VAT when they turn over more than £85,000 in a year. This adds a great deal of extra complexity for running the company. Predictably a lot of companies earn just less than this amount. The graph is worth a thousand words:
https://www.economist.com/cdn-cgi/image/width=1024,quality=80,format=auto/content-assets/images/20230415_BRC700.png https://www.economist.com/cdn-cgi/image/width=1024,quality=8... (from https://www.economist.com/britain/2023/04/11/britains-tax-take-is-getting-bigger-but-not-better https://www.economist.com/britain/2023/04/11/britains-tax-ta...)
- bluedino 3y agoOne similar thing is getting a 1099-MISC for 'side work' in the USA For example, I'll do some hands-on work for a former employer. Rack some network equipment, go investigate something, install some hardware...They take it from there, I can bill a couple hours and it's a nice dinner for my wife and I. However, if I hit a certain threshold ($600?), they will send me a tax form and I'll then have to pay income tax on that money.
- dragonwriter 3y ago> However, if I hit a certain threshold ($600?), they will send me a tax form and I’ll then have to pay income tax on that money. No, the threshold at which you have to include the income in your taxable income ($400/yr) is lower than the threshold for the person paying you to provide a 1099-MISC ($600/yr from that payer.)
- bombcar 3y agoDon't you always have to include the income even if you don't get 1099'd? The $400 is only if it's your only income, otherwise plumbers could always charge $399 a visit and never pay tax.
- gottorf 3y agoThe threshold at which you have to include the income in your taxable income is $0.01.